Chicago Futures Trader Pleads Guilty to Fraud That Sunk His Firm
Chicago Futures Trader Pleads Guilty to Fraud That Sunk His Firm
(Bloomberg) -- Chicago futures trader Thomas Lindstrom pleaded guilty to federal charges stemming from a $13 million fraud that led to the collapse of his firm, the U.S. said.
Federal prosecutors in Chicago said Lindstrom admitted on Tuesday that he used out-of-the-money options on 10-year Treasury futures to make it appear that his trading at Chicago-based Rock Capital Markets LLC was profitable, boosting his pay by $285,000.
"Lindstrom concealed the scheme by telling Rock Capital’s owner that the options were profitable, when in reality Lindstrom’s trading was causing substantial losses,” prosecutors said in a news release.
See: Options Trader Accused of Scheme That Caused Firm’s Collapse
To contact the reporter on this story: David Glovin in New York at dglovin@bloomberg.net.
To contact the editors responsible for this story: Heather Smith at hsmith26@bloomberg.net, Paul Cox
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